Invoice factoring is the selling of invoices to an unauthorised company to improve cash flow and reduce undesirable debt. When a small business uses invoice factoring, they benefit with the immediate boost to cash flow, while at one time eliminating the need to process invoices. Another advantage of invoice factoring could be the reduction in bad debt since the third party purchaser assumes all risk should the invoice is not necessarily paid. Always maintain capital budgeting along with working capital upon mind while realizing the finance administration.